Don't overlook NASDAQ:HRMY—it's a hidden gem with strong fundamentals and an attractive price tag.

Last update: Jan 3, 2025

Our stock screener has singled out HARMONY BIOSCIENCES HOLDINGS (NASDAQ:HRMY) as a stellar value proposition. NASDAQ:HRMY not only scores well in profitability, solvency, and liquidity but also maintains a very reasonable price point. We'll explore this further.

Valuation Assessment of NASDAQ:HRMY

ChartMill provides a Valuation Rating to every stock, ranging from 0 to 10. This rating assesses various valuation aspects, comparing price to earnings and cash flows, while considering factors like profitability and growth. NASDAQ:HRMY boasts a 7 out of 10:

HRMY's Price/Earnings ratio is rather cheap when compared to the industry. HRMY is cheaper than 86.41% of the companies in the same industry.
When comparing the Price/Earnings ratio of HRMY to the average of the S&P500 Index (27.09), we can say HRMY is valued slightly cheaper.
With a Price/Forward Earnings ratio of 10.70, the valuation of HRMY can be described as very reasonable.
Based on the Price/Forward Earnings ratio, HRMY is valued cheaper than 86.41% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.45, HRMY is valued rather cheaply.
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of HRMY indicates a rather cheap valuation: HRMY is cheaper than 89.13% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, HRMY is valued cheaper than 92.93% of the companies in the same industry.
The decent profitability rating of HRMY may justify a higher PE ratio.
A more expensive valuation may be justified as HRMY's earnings are expected to grow with 25.88% in the coming years.

Exploring NASDAQ:HRMY's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:HRMY has achieved a 7:

The Return On Assets of HRMY (13.21%) is better than 96.20% of its industry peers.
The Return On Equity of HRMY (20.55%) is better than 92.93% of its industry peers.
HRMY has a better Return On Invested Capital (18.64%) than 94.02% of its industry peers.
The last Return On Invested Capital (18.64%) for HRMY is above the 3 year average (18.06%), which is a sign of increasing profitability.
The Profit Margin of HRMY (17.98%) is better than 90.76% of its industry peers.
With an excellent Operating Margin value of 28.21%, HRMY belongs to the best of the industry, outperforming 92.39% of the companies in the same industry.
HRMY's Operating Margin has improved in the last couple of years.
HRMY's Gross Margin of 78.65% is amongst the best of the industry. HRMY outperforms 83.15% of its industry peers.

Health Assessment of NASDAQ:HRMY

ChartMill assigns a proprietary Health Rating to each stock. The score is computed by evaluating various liquidity and solvency ratios and ranges from 0 to 10. NASDAQ:HRMY was assigned a score of 8 for health:

An Altman-Z score of 5.41 indicates that HRMY is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.41, HRMY belongs to the top of the industry, outperforming 80.43% of the companies in the same industry.
HRMY has a debt to FCF ratio of 0.83. This is a very positive value and a sign of high solvency as it would only need 0.83 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.83, HRMY belongs to the best of the industry, outperforming 96.74% of the companies in the same industry.
A Debt/Equity ratio of 0.28 indicates that HRMY is not too dependend on debt financing.
A Current Ratio of 3.24 indicates that HRMY has no problem at all paying its short term obligations.
HRMY has a Quick Ratio of 3.20. This indicates that HRMY is financially healthy and has no problem in meeting its short term obligations.

Deciphering NASDAQ:HRMY's Growth Rating

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:HRMY has earned a 7 for growth:

The Revenue has grown by 25.83% in the past year. This is a very strong growth!
The Revenue has been growing by 53.89% on average over the past years. This is a very strong growth!
Based on estimates for the next years, HRMY will show a very strong growth in Earnings Per Share. The EPS will grow by 30.50% on average per year.
HRMY is expected to show a strong growth in Revenue. In the coming years, the Revenue will grow by 21.16% yearly.

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For an up to date full fundamental analysis you can check the fundamental report of HRMY

Disclaimer

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.